Energy aid

promote energy savings or increase the efficiency of energy generation or use; or

otherwise promote the transition towards a low-carbon energy system.

Investments in renewable energy use that are eligible for support:

small-scale electricity and heat production projects;

projects producing biofuels for transportation;

demonstration projects for new technology.

Investments in energy savings and energy efficiency that are eligible for support:

projects involving conventional technology for beneficiaries that have signed an energy efficiency agreement;

demonstration projects for new technology.

ESCO projects.

Aid can also be granted to the following types of studies concerning energy saving, more efficient energy use and the use of renewable energy:

energy audits;

energy analyses.

Projects that are not eligible for aid are conventional studies and investigations on the establishment, expansion, profitability, development, planning, marketing or testing of business activities. As a rule, energy aid will not be granted to projects that fall under the Emissions Trading Act (311/2011).

Energy aid can be granted if:

the project or the new technology included in the project would not be implemented without the aid; and

before the decision on granting the aid is made:

in the case of investment project, the beneficiary has not made any binding investment decision, ordered main equipment or made decision to commence construction work or any other agreement that would make it impossible to withdraw from the project without substantial economic loss;

or in a case of study, the beneficiary has not made any binding acquisition or any other agreement that would make it impossible to withdraw from the project without substantial economic loss.

Energy aid may be granted to companies, municipalities and other organisations. Aid will not be granted to:

organisations whose activities are funded by from the state budget;

agencies, institutions and other public bodies included in the Accounting and Payment Services referred to in the State Budget Act (423/1988);

housing companies, residential properties or farms or projects implemented in connection to them, with the exception of projects implemented in connection to farms where the energy produced is not used in agricultural production;

undertakings in difficulty referred to in the EU state aid rules.

All energy aid applications should be submitted using the online services of Business Finland.

As a rule, Business Finland will process all the aid applications. The Ministry of Economic Affairs and Employment will decide on the grant of aid to investment projects where the expenditure eligible for aid exceeds EUR 5,000,000 or to projects related to new technology where the expenditure eligible for aid exceeds EUR 1,000,000.